According to a Fitch Ratings outlook report for ports, toll roads an airports, U.S. transportation infrastructure will face a mixed outlook for 2021.
Fitch’s 2021 Sector Outlook for U.S. Transportation infrastructure is improving, while Fitch’s 2021 Rating Outlook came out as negative. In the 2021 Sector Outlook, Fitch analyzed improved performance between airports and toll roads. Meanwhile, the negative rating reflects 57% of U.S. transportation ratings that carry negative outlooks.
“Toll roads and cargo ports are expected to recover to 2019 levels by 2022,” said Senior Director Emma Griffith in a press release. “By contrast, airports and cruise ports face a more uphill battle with recovery not likely to materialize until 2024 or perhaps even later.”
Thus far, cargo-focused ports have outperformed Fitch’s expectations. However, this area will face pressure in 2021 due to a worsening economy and the continuing affect of COVID-19 on society. Another factor that will contribute to the success of performance is the CDC’s no-sail order which has also dampened performance for cruise ports.
Toll road have also been a resilient sector since traffic levels have largely returned to pre-pandemic levels.
“Whether traffic recovers or backslides depends upon the path of the virus and related lock-downs, especially regarding commuter traffic from office workers,” said Senior Director Scott Monroe in a press release.
Airports are like to see significant challenges ahead.”Strong fee setting flexibility and liquidity will keep most airports numbers stable, though time will tell if that will be enough to sustain them with pre-pandemic recovery in passenger traffic to remain elusive for several years,” said Senior Director Seth Lehman in a press release.
For more information:’Fitch Ratings 2021 Outlook: U.S. Transportation Infrastructure’ is available at ‘www.fitchratings.com‘.